Some 48% of British SMEs fear the impact of a second wave of the pandemic more than the impact of Brexit, says Nucleus Commercial Finance in latest research.
During the height of ‘Brexit-fever’, many businesses expressed great concern over how the uncertain future of the country would impact them. However, fast-forwarding just a short while to today and only 24% of British SMEs fear the impact of Brexit the most.
The research also revealed that 28% of respondents were concerned about how their business would survive “reduced consumer spending due to lack of financial confidence”. However, in stark contrast to these fears, 18% of respondents stated that they were not fearful about anything.
Chirag Shah (pictured above), chief executive officer at Nucleus Commercial Finance, explained: “It’s natural that given the current uncertainty, businesses are fearful of the future and the impact of significant events such as a second wave of Coronavirus and Brexit. However, UK SMEs are demonstrating considerable resilience, and we expect they will continue to do so.”
| Top concerns for business over next 12 months | % |
|---|---|
| The impact of a second wave of Coronavirus | 48% |
| Reduced consumer spending due to lack of financial confidence | 28% |
| Not recovering from the impact of Coronavirus | 25% |
| The impact of Brexit happening | 24% |
| Having to close the business | 15% |
| Having to make redundancies | 14% |
| N/A – I am not fearful about anything | 18% |
The research took into account the views of 506 SME senior decision makers during 23-30 July this year.
The research also found that younger SME senior decision makers seem less concerned about a second wave than their older counterparts. For example, 38% of 18-34 year olds were most concerned about a second wave, compared to 52% for those aged 35-54 and 49% for senior decision makers aged 55 and over.
Shah added: “We know that there is a role for alternative lenders to play in helping Britain’s businesses and supporting them in achieving their goals. Together, we can support SMEs to ensure they are equipped to tackle any further challenges thrown their way, as well as boost their performance - and, ultimately, stimulate economic growth.”
